9) Brian buys a 10-year decreasing annuity-immediate with annual payments of 10,9,8,...,1. On the same date,...
Two annuities have equal present values. The first is an annuity-immediate with quarterly payments of $X for 10 years. The second is an increasing annuity-immediate with 10 annual payments, where the first payment is $500 and subsequent payments increase by 10% per year. Find X if the annual effective interest rate is 5%. (Answer: 188.28)
5. Samantha buys a 12-year annuity immediate with semi-annual payments for a price X. Payments start at 5000, and decrease 500 per payment until they reach 2000, then remain level at that amount for the remainder of the term. The nominal annual interest rate compounded quarterly is 8% Find X
A perpetuity-due paying 5 every year has a present value of 90. An annuity-immediate paying 10 monthly for 5 years has the same effective rate of interest what is the present value of this annuity? Hint: To calculate the monthly annuity, you should find the present value of a 60 payment annuity using the monthly effective rate of interest that is equivalent to to the annual effective rate of interest that you derived from the perpetuity. That is find i...
(1 point) An annuity-immediate makes payments of 200 per year payable quarterly for 8 years at an effective annual interest rate i = 3%. The accumulated value of this annuity is AV = (1 point) An annuity makes payments of 1700 at the end of every 9 years over 81 years at a nominal annual interest rate of 5.6% compounded quarterly. The present value of this annuity is PV =
An annuity immediate with annual payments has an initial payment of 1. Subsequent payments increase by 1 until reaching a payment of 10. The next payment after the payment of 10 is also equal to 10, and then subsequent payments decrease by 1 until reaching a final payment of 1. Determine the annual effective interest rate at which the present value of this annuity is 78.60. (A) .0325 (B) .0335 (C) .0345 (D) .0355 (E) .0365
Q36: Megan purchases a perpetuity-immediate for 3250 with annual payments of 130. At the same price and interest rate, Chris purchases an annuity-immediate with 20 annual payments that begin at amount P and increase by 15 (growth) each year thereafter. Calculate P . Correct answer is: 116
need help with problems 9-14 I'm stuck. actuarial science 8. A 10 year annuity with continuous payments at the rate of $1000 per year. a) 7,576.25 In #9-14, find the accumulated values at the time of the last payment of the following annuities based on i-5% 9. A six-year annuity with first payment of $250 and payments increasing by $10 per year b) 7,578.75 c) 7,579.95 d) 7,589.35 e) 7,575.45 a)1860.86 10. A five-year annuity, first payment of $6000 and...
An annuity immediate pays $500 per month for the first three years. After that the annuity payments increase by $50 per month for five years and then remain level for an additional six years. At a nominal rate of annual interest of 12% convertible monthly what is the present value of this annuity? The answer in the back is: 140339.571
An annuity immediate pays $500 per month for the first three years. After that the annuity payments increase by $50 per month for five years and then remain level for an additional six years. At a nominal rate of annual interest of 12% convertible monthly what is the present value of this annuity?
an increasing perpetuity immediate makes annual payments. the first payment is 100 and each subsequent payment is larger than the preceding payment by an amount X. based on an annual effective interest rate of 10%, the present value of the perpetuity at time 0 is one half of its present value at time 20. what is rhe value of x?